Last week was the week for social media. That may be changing this week as reality over valuations may be a realization. If nothing else, profit taking had to be expected at some point if investors learned any lesson from the dot-com bubble of 1998 to 2000.
FriendFinder Networks Inc. (NASDAQ: FFN) remains one of the worst IPOs of modern times. After pricing at $10.00 less than a year ago, the stock now sits down around $1.20 per share. What is so interesting is that the stock rallied big last week as the Facebook Halo-effect lifted just about anything and everything tied to social media. This is effectively a social-media hook-up site for adults. It is not as though any Facebook valuation has any correlation here, at least not by our count. FriendFinder shares are down over 5% at $1.22 so far this Monday.
A Stock or ADR which rose substantially last week was Sina Corporation (NASDAQ: SINA) with its rise going from $70 to $76 due to the social media halo. Now shares are currently down about 5% at $71.20.
LinkedIn Corporation (NYSE: LNKD) is currently down 1% at $79.00 after a huge run higher last week.
Zynga Inc. (NASDAQ: ZNGA) was higher but shares have now dipped into the red with a small 0.3% drop at $13.35 and 7 million shares had traded hands in the first 30 minutes of the market trading day.
GSV Capital Corporation (NASDAQ: GSVC) does own shares of Facebook and its shares are down 0.8% at $20.29.
The Global X Social Media Index ETF (NASDAQ: SOCL) is now considered “The Facebook ETF” but it actually does not own a single share of Facebook yet. It will hold Facebook later down the road, but until Facebook holds its IPO this is the “wanna-be Facebook ETF.” Shares are down 1.5% at $14.99.
As a reminder, three of our Top 17 IPOs to Watch in 2012 are social media related… For better or worse.
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